Bill not drafted by TLC or Senate E&E.
Line and page numbers may not match official copy.
By Hirschi H.B. No. 2657
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the imposition of a tax on the purchase of coal in this
1-3 state and to the use of the tax revenue to reduce school property
1-4 taxes; providing penalties.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Subtitle E, Title 2, Tax Code, is amended by
1-7 adding Chapter 161 to read as follows:
1-8 CHAPTER 161. COAL TAX
1-9 SUBCHAPTER A. GENERAL PROVISIONS
1-10 Sec. 161.001. DEFINITIONS. In this chapter:
1-11 (1) "Coal" includes lignite.
1-12 (2) "Lignite" means coal commonly referred to as brown
1-13 coal, of intermediate grade between peat and bituminous coal.
1-14 (3) "Use" includes storage for use in this state, but
1-15 does not include storage for use or shipment out of this state.
1-16 (Sections 161.002-161.020 reserved for expansion
1-17 SUBCHAPTER B. IMPOSITION AND COLLECTION OF TAX
1-18 Sec. 161.021. TAX IMPOSED. (a) A tax is imposed on the
1-19 purchase in this state of coal for use in this state.
1-20 (b) A tax is imposed on the use of any coal in this state.
1-21 Sec. 161.022. RATE OF TAX. The rate of the taxes imposed by
1-22 this chapter is 7.5 percent of the price paid for the coal.
1-23 Sec. 161.023. USE TAX DEDUCTION. Each person subject to the
1-24 tax imposed by this chapter may deduct from the amount of tax
2-1 otherwise imposed by Section 161.021(b) the amount of tax reported
2-2 and paid under Section 161.021(a).
2-3 Sec. 161.024. PAYMENT OF TAX. On or before the 25th day of
2-4 each month, each person subject to the tax imposed by this chapter
2-5 shall send to the comptroller the amount of tax due under this
2-6 chapter for the preceding month.
2-7 Sec. 161.025. REPORTS. (a) On or before the 25th day of
2-8 each month, each person subject to the tax imposed by this chapter
2-9 shall file with the comptroller a report stating:
2-10 (1) the amount of coal purchased by the person
2-11 subject to the tax imposed by this chapter for use in this state
2-12 and used in this state during the preceding month;
2-13 (2) the price of that coal; and
2-14 (3) any other information required by the comptroller.
2-15 (b) A person that does not purchase or use coal during a
2-16 month is not required to file a report under Subsection (a).
2-17 (c) To determine eligibility for the exemption provided by
2-18 Subsection (b), the comptroller may require a person to file an
2-19 information report with the comptroller that contains any
2-20 information the comptroller requires for that determination.
2-21 Sec. 161.026. RECORDS. A person subject to the tax imposed
2-22 by this chapter shall keep a complete record of:
2-23 (1) the use of coal in this state by the person
2-24 subject to the tax imposed by this chapter;
2-25 (2) the amount of coal purchased by the person subject
2-26 to the tax imposed by this chapter for use in this state; and
2-27 (3) any other information required by the comptroller.
2-28 (Sections 161.027-161.050 reserved for expansion
2-29 SUBCHAPTER C. PENALTIES AND OFFENSES
2-30 Sec. 161.051. INTEREST ON DELINQUENT TAX. A tax imposed by
3-1 this chapter that is delinquent draws interest as provided by
3-2 Section 111.060.
3-3 Sec. 161.052. PENALTY. (a) A person on whom a tax is
3-4 imposed by this chapter and who fails to file a report as required
3-5 by this chapter or does not pay the tax when it is due forfeits to
3-6 the state a penalty of 12 percent of the amount of tax delinquent.
3-7 (b) If a report required by this chapter is not filed or a
3-8 tax imposed by this chapter is not paid within 30 days after it is
3-9 due, the person on whom the tax is imposed forfeits to the state a
3-10 penalty of an additional 12 percent of the amount of tax
3-11 delinquent.
3-12 (c) The minimum penalty under this section is $1.
3-13 Sec. 161.053. CRIMINAL PENALTY. (a) A person who violates
3-14 this chapter commits an offense.
3-15 (b) An offense under this section is a Class C misdemeanor.
3-16 (Sections 161.054-161.070 reserved for expansion
3-17 SUBCHAPTER D. ALLOCATION AND USE
3-18 Sec. 161.071. ALLOCATION OF TAX REVENUE. All of the revenue
3-19 from the tax imposed by this chapter shall be deposited to the
3-20 credit of the available school fund.
3-21 Sec. 161.072. USE OF TAX REVENUE. (a) The available school
3-22 fund money received by a school district that is derived from the
3-23 tax imposed by this chapter is for the use and benefit of the
3-24 school district and shall be used for the replacement of property
3-25 tax revenue lost as a result of the receipt of that money.
3-26 (b) Notwithstanding Section 31.021, Education Code, the
3-27 State Board of Education may not set aside for the state textbook
3-28 fund money in the available school fund that is derived from the
3-29 tax imposed by this chapter.
3-30 SECTION 2. Section 43.014, Education Code, is amended by
4-1 adding Subsection (e) to read as follows:
4-2 (e) Not later than August 1 of each year, the comptroller
4-3 shall provide to each school district a report that includes:
4-4 (1) the total amount the district received during the
4-5 previous tax year from the available school fund that was derived
4-6 from the taxes imposed by Chapter 161, Tax Code; and
4-7 (2) an estimate of the amount the district should
4-8 receive during the district's current tax year from the available
4-9 school fund that will derive from the taxes imposed by Chapter 161,
4-10 Tax Code.
4-11 SECTION 3. Section 26.012, Tax Code, is amended by adding
4-12 Subdivision (18) to read as follows:
4-13 (18) "Additional available school fund revenue" means
4-14 the available school fund revenue a school district receives that
4-15 is derived from the taxes imposed by Chapter 161.
4-16 SECTION 4. Section 26.04, Tax Code, is amended by adding
4-17 Subsection (k) to read as follows:
4-18 (k) In addition to the information required by Subsection
4-19 (e), the designated officer or employee of a school district shall
4-20 include in the notice required by Subsection (e) the amount of
4-21 additional available school fund revenue anticipated by the school
4-22 district in computations under Section 26.046.
4-23 SECTION 5. Chapter 26, Tax Code, is amended by adding
4-24 Section 26.046 to read as follows:
4-25 Sec. 26.046. EFFECTIVE TAX RATE IN SCHOOL DISTRICT RECEIVING
4-26 ADDITIONAL AVAILABLE SCHOOL FUND REVENUE. (a) In the first tax
4-27 year in which a school district receives additional available
4-28 school fund revenue for the entire tax year, the officer or
4-29 employee designated to make the calculations provided by Section
4-30 26.04 shall subtract from the school district's rollback and
5-1 effective tax rates the amount that, if applied to the total
5-2 taxable value submitted to the governing body, would impose an
5-3 amount equal to the amount of additional available school fund
5-4 revenue the district will receive during that tax year.
5-5 (b) In a tax year to which this section applies, a reference
5-6 in Section 26.04(d), 26.05, 26.06, or 26.08 to the district's
5-7 effective or rollback tax rate refers to that rate as adjusted
5-8 under this section.
5-9 SECTION 6. Section 31.01, Tax Code, is amended by adding
5-10 Subsection (k) to read as follows:
5-11 (k) For a school district that receives available school
5-12 fund revenue that is derived from the taxes imposed by Chapter 161,
5-13 the tax bill shall indicate the amount of additional ad valorem
5-14 taxes, if any, that would have been imposed on the property if
5-15 additional ad valorem taxes had been imposed in an amount equal to
5-16 the amount of revenue estimated to be received from that available
5-17 school fund revenue for the year determined as provided by Section
5-18 26.046.
5-19 SECTION 7. (a) Except as provided by Subsection (b) of this
5-20 section, this Act takes effect January 1, 1998, and applies to tax
5-21 rates adopted on or after that date.
5-22 (b) Chapter 161, Tax Code, as added by this Act, takes
5-23 effect December 1, 1997, and applies to coal purchased by a public
5-24 utility on or after that date.
5-25 SECTION 8. The importance of this legislation and the
5-26 crowded condition of the calendars in both houses create an
5-27 emergency and an imperative public necessity that the
5-28 constitutional rule requiring bills to be read on three several
5-29 days in each house be suspended, and this rule is hereby suspended.